The Indian IT industry is witnessing a split in hiring patterns. While large IT services firms continue to tread cautiously, the demand for artificial intelligence (AI) talent remains robust and sustained, particularly among professionals with higher experience and compensation levels.
AI Roles Surge, Especially for Senior Talent
According to Pawan Goyal, Executive Director at Naukri.com, AI job demand has remained consistently high, showing a sustained 40% growth rate. “There’s a significant pull for AI specialists, especially those earning above ₹20 lakh annually,” Goyal noted.
Interestingly, companies are now expanding their talent search to tier-2 and tier-3 cities to find cost-effective but capable professionals.
June Sees Hiring Uptick in Select IT Segments
The Naukri JobSpeak Index recorded an 11% increase in overall hiring in June, following a 9% increase in May. IT hiring, which had remained flat in April and dipped in May, finally showed a 5% rise in June, indicating early signs of a recovery.
However, Abhishek Kumar from JM Financial pointed out that large-cap IT services firms are still hesitant. Factors such as automation, weak demand, and high employee utilisation are keeping hiring low.
Operational Efficiency Takes Center Stage
Instead of hiring for expansion, most IT giants are now focused on strengthening their “employee pyramid” by onboarding freshers and reducing mid-level headcount. With limited clarity on client demand recovery, companies are prioritising operational efficiency over aggressive hiring.
Hiring is now concentrated in niche areas such as AI, cloud computing, and cybersecurity—skills that directly align with digital transformation projects.
Non-IT Sectors Lead Hiring Growth
Beyond tech, sectors like advertising, PR, and events witnessed a 22% rise in hiring in June, while the media and entertainment sector followed with a 16% increase. The ITeS and BPO industries also grew by 9% this quarter, spiking to 19% in June alone.
Outlook: Wait and Watch
While AI remains a bright spot, the overall hiring sentiment in India’s IT sector is still cautious. As companies optimise cost and capacity, the focus is shifting from scale to specialisation, signalling a redefined job market for tech professionals.
